The minimum increases to 8% (3% employer and 5% employee) are in relation to pension schemes using Qualifying Earnings as their contribution basis.
If your scheme is using one of the alternative qualifying certifications - (Set1) - basic earnings, (Set 2) - total earnings of which 85% is basic salary or (Set 3) - total earnings - the minimum increases may differ – see table below
The table below shows the minimum contribution levels required from 6 April 2019
Earnings definition | Total contribution required | Minimum employer contribution | Employee potential contribution |
Qualifying Earnings | 8% | 3% | 5% |
Set 1 | 9% | 4% | 5% |
Set 2 | 8% | 3% | 5% |
Set 3 | 7% | 3% | 4% |
Typically we are finding schemes using basic earnings (Set1) as their definition.
For more information, simply complete our enquiry form, send us an email or call our Cambridge office on 01223 720209 or our Norwich office on 01603 692733.
NW Brown Employee Benefits is a trading name of NW Brown & Company Limited. NW Brown & Company Limited is authorised and regulated by the Financial Conduct Authority to provide regulated services (191123).